Outlook 2013: Why the Economy Is Vulnerable

The U.S. economy may have avoided the fiscal cliff, but it is not out of the woods, as Kathleen Madigan reports on Markets Hub.

This transcript has been automatically generated and may not be 100% accurate.

... I ... Dow Jones industrial average down thirteen points on this Thursday morning at the ocean is big three hundred point rally so yesterday in a huge rally ... because of the worst ... of the fiscal cliff was avoided not necessarily the fiscal cliff was avoided ... the worst was avoiding the fact ... that tiny getting that today did not really moving the day ... down a little bit no follow through from the rally why is that while because although the worst of the fiscal cliff was oblivious to in Congress finally did something ... pot holes remaining twenty thirteen Kathleen Madigan DowJones columnist or talk about ... the year ahead ... and ... when does the fundamental case for a strong ... growing the time ... at its heart and ... to think you're an anti Strine ... I'm saying three percent plus and Wednesday nights and roll which is what rehiring to the high adventure point shot at jump in the Dow would ... make you ... really did mean it's all smooth sailing from now on and ... in the same problems ... um ... both economically and to some extent fiscally that we had December thirty first ... we still have January second rate on its own that the ... rally in stocks and its eyes in one of the gang unloading and Congress to get something right the dress today oxide that if I needed something to avoid the economy tumbling head to head over heels down the clear ... yet ... but it seems like we're going to be kind of repelling down ... that because you're my now they are going to be doing this in a series of increments ... and that certain agreements in the longer trends on them or hers ... confidence is mending and we saw last interest sales numbers out today they were not operate in December ... people worry re write the eye and actually wrote a column saying im ... the icon is forecast Regina and have to input ... click shocks into their forecasts because every here ... we come up against the three D C ... because the politics ... not because of economic fundamentals ... will not ... give us some budgetary ... uncertainty ... and that and yes ... even outside of DC we still have problems in this economy I mean ... it's not hard pressed to get back up to eight percent unemployment rate the lonely Mountain had six hundred thousand ... of the people are now added the labor force and they're imagining of million of them ... scary ... coming back and looking pre work because ... Sydney their unemployment benefits have run out to where ... you know there's the phenomenon sketches she says get a job right ... so as Yellen and an increase in size the perennial ... another spike in gasoline prices ... rising gas prices ... the crude futures around ninety two dollars a barrel right Hanao ... at six hundred thousand number and actively look to the large number of but you can get easily within two months write out yet because we don't know what what in our bed the adult working age population is under fifty billion yen ... so ... yes ... it's for a bank that's not a big margin there she can rack up there ... um yes and I don't think it's gonna get from seven point seven to eight percent but ... could it get it soon I'll be back to their ... debt in law lies ... is that the core of the Congress of that is what you're saying is ... you don't actually expect to see some great job growth ... in these next few months and we think the job ... I think I am regardless of what we get tomorrow ... after the December number which could ... be some tennis snapback from Sandy ... a nanny and to present time is on to preach and went to the ... new gnome maybe when seventy five ... and that's just not enough ... to that's basically ... providing jobs for all the people who come into it with a market that population growth yet yet and him a view of a couple months a higher price so low or PRI our react when we did last year from around ... yes and and so ... the in out its worse ... an economy that yes I do think ... I don't think there's a recession ... and five ... when you have the under fifty thousand to twenty and pay and job ... growth wing and growth and that two percent for a lot of people it still feels ... like a recession to end and you're not Guinea get a lot of wage growth in personal income growth ... that is gonna make people feel really happy ... or would go out there and stand in an edition and all workers ... all this and haven't taken two percent pay cut ... because the Westlake right right ... now that's on the U S with overseas mission gas prices are very early in a national or it ... would also oversee the sea well Aiden when ye I think the big ... biggest worry overseas on although you know when you go around the world as I see shocks ... is it all these old trade skirmishes that people in resenting of ... debt I worry that things went a currency war ... and on the anime tyres chain ... of Brazil Japan and I can't complain about ... the dollar ... on ... and that's what of those things that ... kind of can ... you come up upon this without really any warning even Nokia looking back you'll see a here you can read back in speeches recently so this on the Nasdaq and can be rough around an awesome or worry about all these old border skirmishes that ... especially with China ... all right Kathleen Madigan ... 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